You have to wait for a year to get the YU7. Lei Jun is more anxious than his fans.

After the YU7 received nearly 300,000 large orders within an hour of its launch, Xiaomi is facing an unprecedentedly arduous production capacity sprint.

As of now, the delivery time for the YU7 on the Xiaomi Auto APP has been extended to 9 months, or even more than a year. Among them, the standard version of the YU7 has a delivery time of 58 - 61 weeks, the Pro version 51 - 54 weeks, and the Max version 39 - 42 weeks.

A salesperson at a Xiaomi Auto store confirmed this to Zimubang (ID: wujicaijing) and recommended ordering the Max version, which has a starting price as high as 329,900 yuan, to try to shorten the delivery cycle.

Xiaomi fans don't particularly mind the long wait. During a store visit, Zimubang found that the waiting period of up to a year hasn't dampened the enthusiasm of loyal fans. This is due in part to brand loyalty and the fact that most car buyers are purchasing an additional vehicle and already have another car at home.

However, Xiaomi, which has hundreds of thousands of locked orders, can't afford to relax for a whole year. How to quickly increase production capacity has become Xiaomi Auto's top priority for a long time to come.

Currently, all of Xiaomi's vehicles are produced at the first - phase factory in Beijing's Yizhuang. Originally designed with an annual production capacity of 150,000 vehicles, it started operating in two shifts last June and has tapped into its potential by installing robots. Currently, a new car rolls off the production line every 76 seconds at this factory, with a daily output of about 1,000 vehicles.

The key to Xiaomi's production capacity increase is the second - phase factory, which is scheduled to be completed in mid - June. Its planned production capacity is also 150,000 vehicles per year. It is expected to start production between July and August. According to recruitment information, the second - phase factory will operate in two shifts, with a daily working hours of up to 11 hours.

Shortly before the YU7 was launched, Xiaomi spent more than 600 million yuan to acquire an industrial land plot of less than 500,000 square meters next to the second - phase factory. It is widely believed that this land will be used to build Xiaomi's third - phase factory.

In addition, since the end of last year, Xiaomi has frequently been reported to be recruiting talents related to automobile manufacturing in Wuhan and Shanghai, which may be a precursor to building factories in these two cities.

However, to date, apart from the imminent second - phase factory, other production capacity plans for Xiaomi Auto remain at the rumor stage, and it's hard to solve the immediate problem. YU7 owners who have already locked in their orders probably shouldn't be too optimistic about early delivery.

On the other hand, Xiaomi's old and new competitors are doing their best to "intercept orders" and are trying to seize the opportunity during Xiaomi's production capacity bottleneck period to launch a blocking battle.

In the pure - electric mid - to large - sized SUV segment where the YU7 competes, the competition is much more intense than in the pure - electric mid - sized sedan segment where the SU7 is located. In addition to the leading Tesla Model Y, NIO, XPeng, Li Auto, Hongmeng Zhixing, Zeekr, IM Motors, and traditional automakers are all eyeing this market. Shortly after the YU7 was launched, many automakers offered a subsidy of 5,000 yuan for the order - locking fee to attract potential Xiaomi customers to switch brands.

Caption: The estimated delivery time for the standard version of the Xiaomi YU7 is more than a year.

In terms of industry policies, time is not on Xiaomi's side. The policy of exempting new - energy vehicles from purchase tax in 2024 and 2025 is likely to be significantly scaled back next year. At that time, the tax reduction per vehicle will shrink from 30,000 yuan to 15,000 yuan. Xiaomi YU7 owners may then have to pay more than 10,000 yuan in additional taxes.

Previously, Xiaomi ambitiously raised its annual delivery target to 350,000 vehicles and expected to turn a profit in the third and fourth quarters of this year. After the YU7 got off to a great start, whether Xiaomi can quickly make up for the production capacity gap and fend off the fierce attacks from competitors and avoid order losses as much as possible is directly related to whether Xiaomi Auto can achieve its KPIs this year and will also have a significant impact on its competitive position.

A

Before the official launch of the YU7, Xiaomi Auto had already pushed its production capacity to the limit, but still couldn't meet the demand.

The first - phase Xiaomi factory, covering an area of 720,000 square meters, has high - end specifications. It is equipped with a large number of industrial robots and has a first - class automation level in the industry. It also has a 9,100 - ton integrated die - casting machine, which can shorten the body production time by nearly half by die - casting large parts at once. It is known as one of only two factories in China with such a giant die - casting machine.

Over the past year or so, the production capacity of this factory has been continuously increasing. It has been raised from the originally planned 150,000 vehicles per year to 1,000 vehicles per day, equivalent to 365,000 vehicles per year, a significant increase of 140%.

The delivery volume of Xiaomi Auto has also increased accordingly. In June last year, the monthly delivery volume of the SU7 exceeded 10,000 vehicles; in October of the same year, both the production and delivery volumes exceeded 20,000 vehicles; in March this year, it exceeded 29,000 vehicles, almost reaching the monthly production capacity of about 30,000 vehicles.

However, even after more than a year of sales, the delivery time for the SU7 is still more than 8 months. This shows that even if the first - phase Xiaomi factory only produces one model, its production capacity gap is still quite large.

Moreover, the production capacity of the first - phase Xiaomi factory is also being squeezed by the YU7.

According to official data, the delivery volume of Xiaomi Auto exceeded 25,000 vehicles in June this year, a slight decline from 29,000 vehicles three months ago. Considering the still long delivery cycle of the SU7, the decline in delivery volume is probably not due to weak sales, but rather because Xiaomi actively allocated some production capacity to the YU7 to ensure that there are vehicles available for delivery after its launch.

Lei Jun and Xiaomi's management have long recognized the seriousness of the production capacity problem and have tried to reassure consumers.

Since the beginning of this year, Lei Jun has posted on Weibo several times, saying that Xiaomi Auto has been making every effort to increase production capacity and has made some progress. After the YU7 was launched, Lei Jun reposted "Answers to Netizens' Questions about Xiaomi Auto" and promised to "go all out to speed up production and strive to deliver the cars to customers as soon as possible."

Wang Hua, the general manager of Xiaomi's public relations department, said that the delivery time shown in the Xiaomi Auto APP is an estimated reference. As the production line becomes more efficient and the production capacity continues to increase, the actual delivery time may change dynamically, and the delivery time will be updated accordingly.

The second - phase factory, which is similar in scale to the first - phase one, is a key layout for Xiaomi Auto to expand production. It is widely believed that after the second - phase factory starts production in July and August, it will mainly produce the YU7.

However, an automobile factory needs to go through a production capacity ramp - up period. It took the first - phase Xiaomi factory three months to reach a monthly production of 10,000 vehicles and half a year to increase it to 20,000 vehicles. By this reference, the second - phase factory may not reach full production capacity until the end of this year.

Zimubang learned that currently, YU7 buyers who can get their cars relatively quickly mostly rely on their speed and internet connection.

At a Xiaomi Auto store on Beijing's East Third Ring Road, a user revealed that after the YU7's large - order reservation opened at 10 p.m. on the night of the product launch, he placed an order for a "quasi - in - stock car" immediately. He expects to pick up the car within 1 - 5 weeks. "Quasi - in - stock cars" are pre - produced models by Xiaomi. There are only Max versions, with pre - configured interior and paint colors and many additional features. Users have little room for adjustment.

Another user said that he placed an order 26 seconds after the large - order reservation started, and the delivery time has been extended to 13 weeks.

The combination of enthusiastic fans and long waiting times has given rise to a gray market for YU7 order transfers. On Xianyu, some transferred orders are priced at over 10,000 yuan.

A potential car buyer said that those who are placing orders now are all Xiaomi fans, and "they can wait." However, if the cars can't be delivered quickly, potential buyers who are not die - hard fans may be discouraged by the delivery cycle of up to a year. Even if they have placed large orders and locked in their purchases, they may switch to other brands.

Facing a waiting period of 9 months or even a year, Xiaomi fans may be patient, but Xiaomi can't afford to be calm. To achieve the annual delivery target of 350,000 vehicles, Xiaomi's factories need to work harder.

B

The long waiting time caused by the production capacity bottleneck is almost the only visible weakness of Lei Jun and Xiaomi Auto, and it is also the most important breakthrough point for other automakers to block Xiaomi. Before Xiaomi completes its production capacity ramp - up, trying every means to poach more orders has become an undisguised competitive strategy for many automakers.

Shortly after the large - order reservation for the YU7 started, automakers such as NIO, Jiecai, IM Motors, Zeekr, and Avatr launched a blocking campaign: Xiaomi's potential car buyers who switch after locking in their orders can get a 5,000 - yuan deposit compensation.

Take NIO as an example. If a potential Xiaomi car buyer purchases a NIO or LeDao model, they can get a "reimbursement" of the 5,000 - yuan order - locking deposit; if they buy the more affordable Firefly model, they can still get 2,000 yuan.

In 2024, NIO lost more than 100,000 yuan for each vehicle sold. For NIO, which is tightening its belt, a 5,000 - yuan subsidy per vehicle is not a small amount, which also reflects NIO's determination to "intercept orders" from the side.

In addition to trying to poach potential Xiaomi car buyers with subsidies, the delivery time of the YU7 is also a major target for competitors.

In the showrooms of various automakers, many salespeople emphasize the fast delivery time when promoting their own models. A person in charge of Dongfeng Nissan even claimed that it takes more than a year to get a Xiaomi YU7, saying that "there are no such blindly loyal brand fans in any country," which caused a stir and he finally had to apologize and delete the post.

During the encore live - stream on July 2, Lei Jun mentioned the "interception response tactics" of other automakers and thought that "it's unnecessary." Somewhat ironically, Lei Jun also recommended several competing models to impatient consumers, including the Model Y, the main competitor of the YU7, as well as the upcoming XPeng G7 and Li Auto i8.

In addition, some automakers have made urgent price adjustments to attract customers with lower prices.

Two days before the launch of the YU7, Jiecai announced a limited - time promotion. The price of its SUV model, the R7, was reduced by 20,000 yuan. The starting price of the pure - electric version dropped from 259,800 yuan to 229,800 yuan. The R7 is positioned similarly to the YU7. Originally, it was more than 6,000 yuan more expensive, but after the price cut, it has a price advantage of more than 20,000 yuan.

Tesla, which was repeatedly mentioned by Xiaomi at the product launch, is also a bit restless.

In early July, Tesla announced that due to a change in battery formula, an increase in battery range, and the standard inclusion of an "acceleration boost package," the price of the long - range version of the Model 3 was increased by 10,000 yuan. However, the starting price of the long - range version of the Model Y, whose battery has also been upgraded, remains at 313,500 yuan. The Model Y, which was already several tens of thousands of yuan more expensive, doesn't seem to want to raise its price rashly when the YU7 is at the peak of its popularity.

In addition to old competitors, new competitors for the YU7 are entering the market in large numbers.

XPeng launched a new SUV, the G7, on July 3, which is positioned similarly to the YU7. He Xiaopeng previously said that he hoped the G7 could bring "surprises and different choices" when congratulating the YU7 on its launch.

Li Auto will launch the i8 and i6 in the second half of the year, both of which are potential competitors to the YU7. While wishing the YU7 great success, Li Xiang emphasized the sporty orientation of the Xiaomi YU7 and said that the i8 is a family - oriented SUV that focuses more on the travel experience of the whole family.

Li Bin of NIO said that the YU7 pursues excellence in sports, while the LeDao L90, which will start pre - sales in early July, pursues excellence in space and energy efficiency. Shen Fei, the president of LeDao, said after the YU7 was launched that now consumers can safely choose the LeDao L60.

In the pure - electric mid - to large - sized SUV segment, in addition to Tesla, NIO, XPeng, and Li Auto, Hongmeng Zhixing, Zeekr, IM Motors, Voyah, and even traditional automakers all have the ability to compete. New and old competitors not only have much faster delivery times but also have their own advantages in brand power, software, and hardware. Especially in the field of intelligent assisted driving, Hongmeng Zhixing, XPeng, and Li Auto are regarded as the first - tier players, leading other automakers.

The YU7, with a minimum delivery time of 9 months, has given its competitors a huge opportunity window. This popular model, which is powerful but constrained by production capacity, has got an excellent start under the strong marketing of Lei Jun and Xiaomi, but also has a difficult scenario of being besieged right from the start.

C

At the YU7 launch event, Lei Jun spent a considerable amount of time talking about the differences between this car and the Tesla Model Y, which sold 480,000 units in China last year and is Tesla's main model.

Xiaomi is trying to convey the message that the YU7 is not only cheaper but